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A Standard Guide for First Time Insurance Buyers

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With the growing population of the country, commuting has become quite stressful and time-consuming. However, one of the efficient ways to sneak through congested traffic and handle short commutes daily is with the help of a two-wheeler. Two-wheelers occupy minimum parking space, do not consume a lot of fuel, and help you get to your destination smoothly.

If you’re driving your vehicle on Indian roads, you must follow the traffic rules on the road to ensure your vehicle’s safety and protect other riders on the roads. One of the easiest methods to ensure the protection of your vehicle is to buy two-wheeler insurance.

What is bike insurance?

A bike insurance policy is an insurance plan that provides you with financial coverage if something unfortunate happens to your vehicle (accidental damage and theft). As per the MVA (Motor Vehicles Act, 1988), every two-wheeler owner in the country must have a valid insurance policy for the vehicle. With a two-wheeler insurance policy, you will be at peace knowing that your insurance policy is in place and will protect your vehicle from any damage.

There are multiple insurance plans available in the market, and if you’re buying a two-wheeler insurance plan for the first time, it may be a bit overwhelming for you. As the process seems a bit complex, you tend to purchase the most famous plan that you come across and later repent the purchase when it doesn’t meet your requirements. This is not the right procedure to purchase an insurance plan, as everyone has unique insurance requirements.

How can you get the right bike insurance plan?

There are multiple ways to buy a bike insurance plan these days. Many insurance companies allow their customers to purchase the policy online and the ability to carry out other insurance-related tasks online as well. For instance, online insurance renewal by TATA AIG makes the renewal process quite convenient for its customers. If you want to get the ideal bike insurance for yourself, you should follow the steps listed below:


  1. Analyze insurance requirements:

Before you begin your hunt for the perfect bike insurance plan, you must analyze your insurance requirements and why you need it. Once you have understood your requirements clearly, you will get a decent idea about the coverage you want. The basic that must be included in your bike insurance coverage is the protection and safety of your vehicle. With a suitable plan, you won’t need to shell out anything from your pocket in the event of an accident. Based on the plan you choose, your insurance company will pay for the required expenses when the incident occurs.


  1. Learn about insurance plan options:

After you have understood your coverage requirements, you must begin researching the different plans available in the market. There are broadly two types of bike insurance plans:

  • Third-party liability:

A third-party liability insurance plan would provide a third party with financial protection if your vehicle were the cause of damage to their vehicle. As per the MVA, every two-wheeler owner must have a third-party liability plan.

  • Comprehensive bike insurance:

A comprehensive bike insurance plan protects your vehicle and provides you with third-party coverage. With comprehensive bike insurance, you get full insurance protection against any expenses, so you do not have to bear any financial liabilities.


  1. Compare different plans:

After you have decided on the type of insurance you want for your vehicle, you can begin comparing the different insurance plans available in the market. It is a crucial step to buy the best insurance plan available that will suit your requirements.

An essential factor to consider when buying a two-wheeler insurance policy is the premium amount that comes with the plan.

Bike insurance premiums:

When you purchase an insurance policy for your bike, you will have to pay a premium amount to the insurance company for a pre-defined tenure to uphold the insurance coverage. The premium amount will depend on the insurance coverage offered by the plan. It would help if you conducted a bike insurance premium comparison among the plans suitable for you, as it will help you choose a low premium bike insurance policy without compromising on the coverage. You can rely on a two-wheeler insurance premium calculator to determine the premium amount and understand the different factors that affect your insurance premium and thus, customize the plan as per your suitability. Other than this, you can follow certain steps to lower the amount you pay as premiums.

Three ways you can reduce your premium amount on the insurance plan:


  1. Opt for a higher deductible:

A voluntary deductible is an amount you pay from your pocket before the insurance company pays for your claim. Depending on the voluntary deductible amount, the insurer will offer you a low premium.


  1. Gather NCB:

If you don’t file an insurance claim during the policy year, the insurer will offer you a No-Claim Bonus (NCB). The bonus will be a discount on the premium amount. If you spend five consecutive years without filing a claim, you can get a 50% discount on the premium amount.


  1. Go for a long-term policy:

With a long-term policy, you can save money on the annual premium as the third-party coverage rises while protecting the No-Claim bonus.

Conclusion:

Therefore, if you’re a bike owner in India, you must take extra steps towards ensuring the safety of your vehicle. However, if you’re purchasing bike insurance for the first time, you must follow a few simple steps to ensure you get the ideal plan for your bike. This article, thus, provides a basic guide to help you with your first bike insurance purchase.

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